Correlation Between Premier Marketing and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Premier Marketing and Thai Oil at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Premier Marketing and Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Marketing Public and Thai Oil Public, you can compare the effects of market volatilities on Premier Marketing and Thai Oil and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Premier Marketing with a short position of Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Marketing and Thai Oil.
Diversification Opportunities for Premier Marketing and Thai Oil
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Premier and Thai is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Premier Marketing Public and Thai Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Oil Public and Premier Marketing is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Premier Marketing Public are associated (or correlated) with Thai Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil Public has no effect on the direction of Premier Marketing i.e., Premier Marketing and Thai Oil go up and down completely randomly.
Pair Corralation between Premier Marketing and Thai Oil
Assuming the 90 days horizon Premier Marketing Public is expected to generate 1.33 times more return on investment than Thai Oil. However, Premier Marketing is 1.33 times more volatile than Thai Oil Public. It trades about 0.13 of its potential returns per unit of risk. Thai Oil Public is currently generating about -0.1 per unit of risk. If you would invest 860.00 in Premier Marketing Public on August 29, 2024 and sell it today you would earn a total of 65.00 from holding Premier Marketing Public or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Premier Marketing Public vs. Thai Oil Public
Performance |
| Timeline |
| Premier Marketing Public |
| Thai Oil Public |
Premier Marketing and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Marketing and Thai Oil
The main advantage of trading using opposite Premier Marketing and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Marketing position performs unexpectedly, Thai Oil can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Thai Oil will offset losses from the drop in Thai Oil's long position.| Premier Marketing vs. Haad Thip Public | Premier Marketing vs. MK Restaurant Group | Premier Marketing vs. Thai Union Group | Premier Marketing vs. Taokaenoi Food Marketing |
| Thai Oil vs. Copperwired Public | Thai Oil vs. Winnergy Medical Public | Thai Oil vs. PINTHONG INDUSTRIAL PARK | Thai Oil vs. Digital Telecommunications Infrastructure |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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